In the fiscal year 2077/78, First Microfinance Laghubitta (FMDBL) recorded a profit increase of only 1.29 percent. According to the company’s unaudited fourth quarterly report for fiscal year 2077/78, it achieved a profit of Rs. 14.15 crores. During the same period last year, it made a net profit of Rs. 13.97 crores.
The company has a paid-up capital of Rs. 87.68 crores. The reserve has increased by 102 percent in a year to Rs. 28.01 crores. Similarly, the microfinance institution borrowed Rs. 8.60 Arba and disbursed Rs. 8.2 Arba in loans till the end of Ashad 2077/78. Borrowings and loans have increased by 64% and 48%, respectively.
Net interest income for First Microfinance was Rs. 26.47 crores, an increase of 18% over the previous year. Similarly, the company’s operating profit increased by 3% to Rs 22.51 crores.
The percentage of non-performing loans (NPLs) is zero. The fund’s cost of capital has dropped to 5.36 percent.
The Earnings Per Share (EPS) of First Microfinance is Rs. 16.14 percent, according to the per share ratios. In addition, each share has a net worth of Rs. 131.95. The P/E ratio is 50.99 at the current market price of Rs. 823 (of Ashad end, 2078 BS). This suggests that FMDBL’s stock is overvalued in comparison to its earnings.
The following table summarizes the unaudited fourth quarter report for fiscal year 2077/78:
Unaudited Fourth Quarterly Report Summary, FY 2077/78, First Microfinance Laghubitta (FMDBL)
|Financial Indicators||4th Qtr, F.Y. 2077/78||4th Qtr, F.Y. 2076/77||Percent Change|
|Paid up capital (Rs.’crores’)||87.68||87.68||0|
|Reserve and Surplus (Rs.’ crores’)||28.01||13.83||102.53|
|Loans & Advances (Rs.’Arba’)||8.2||5.54||48.01|
|Net Interest Income (Rs.’crores’)||26.47||22.41||18.12|
|Operating Profit (Rs. ‘crores’)||22.51||21.79||3.30|
|Net Profit (Rs.’crores’)||14.15||13.97||1.29|
|Non Performing Loans, NPL (%)||0||0||–|
|Cost of Funds (%)||5.36||10.07||-46.77|
|Earnings Per Share, EPS (Rs.)||16.14|
|Networth Per Share ( Rs.)||131.95|
|Market Price Per Share (Rs.) [Ashad end, 2078 BS]||823|
Please note that:
The aforementioned numbers are taken from the respective company’s unaudited quarterly report. When making investment selections, investors should examine a variety of factors in addition to this study. After the final audit, the figures may change.
First Microfinance Laghubitta Bittiya Sanstha Limited (FMDBL)
As a national level microfinance, First Microfinance Laghubitta began operations on January 8, 2010 (Poush 24, 2066 BS) in Kathmandu. Nepal Rastra Bank granted it a license under the Bank and Financial Institution Act of 2073. Through MFIs, First Microfinance provides microfinance services to the economically and socially underprivileged.
Global IME Bank Limited, Prabhu Bank Limited, Deva Bikas Bank Limited, ICFC Finance Limited, prominent bankers, Chartered accountants, and professionals are behind First Microfinance.
The company’s promoters own 51 percent of the stock, while the general public owns 49 percent.